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Millington Materials is a leading supplier of building equipment, building products,materials & timber for sale, with over 200 branches across the Mid-South. On January 1, 2016, management decided to change from the LIFO inventory costing method to the FIFO inventory costing method at each of its outlets. The following table presents information concerning the change. The income tax rate for all years is 40%.

	Income before Income Tax
	FIFO			LIFO			Difference
Before 2015	$	22	million	$	15	million	$	7	million
2015		22	million		12	million		10	million
2016		17	million		16	million		1	million
2. Determine the net income to be reported in the 20162015 comparative income statements 2016 2015 ($ in millions) Net Income $0.0 $0.0

Compute the balance of retained earnings on Jan. 1, 2015, Dec. 31, 2015 and Dec. 31, 2016. Cash dividends were $1.7 million each year. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

MILLINGTON SUPPLIES
Statement of Shareholders Equity
For the Years Ended Dec. 31, 2016 and 2015
	Common Stock	Additional Paid-in Capital	Retained Earnings	Total Shareholders Equity
			($ in millions)
Balance at Jan. 1, 2015
Balance at Dec. 31, 2015
Balance at Dec. 31, 2016

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